CRISIS COVERAGE REPORT
BAILOUTS, MERGERS, CORRUPTION
EXTENDED BREAKDOWN ANALYSIS


* Critical Tidbits
* Systemic Failure & Empire End
* China Trade War Brews
* USGovt Exposure & Retaliation
* British Petroleum Damage Control


HAT TRICK LETTER
Issue #77
Jim Willie CB, 
“the Golden Jackass”
15 August 2010

"When plunder becomes a way of life for a group of men, they create for themselves, in the course of time, a legal system that authorizes it, and a moral code that glorifies it."
~ Frederic Bastiat (political economist, 1850)

"A government that robs Peter to pay Paul can always count on Paul's support."
~ George Bernard Shaw

"We need to make sure we do not go to a level where the [USGovt] deficits are dangerous." ~ Stenny Hoyer (Majority Leader of the US House of Representatives)

"I write about major problems: the collapsing US economy, wars based on lies and deception, the police state based on the war on terror, and other fabrications."
~ Paul Craig Roberts

CRISIS TIDBITS

◄$$$ THE SECURITIES & EXCHANGE COMMISSION HAS AN EXCLUSIVE EXEMPTION FROM FREEDOM OF INFORMATION DEMANDS. IT HAS BECOME A TARGET. THE POWERZ WISH TO KEEP SOME CRIMINAL RECORDS SACRED. THE FINANCIAL REGULATION BILL IS A CLEVER SYNDICATE LICENSE TO CONTINUE ITS FRAUD, THEFT, AND CONCEALMENT. $$$

The Securities & Exchange Commission will continue to enjoy some exclusive protection from the Freedom of Information Act, courtesy of the new Financial Regulation Act. Such a unique clause highlights the criminal element in full control of the legislation, which began with good civic and public motives. Wall Street writes the new laws that the people initiate out of righteous indignation. Wall Street spent $600 million on lobbyist fees for the privilege. The SEC wanted to remain beyond accountability to anyone, even the Constitution. Recent attempts by Senator Kaufman of Delaware to force disclosure to the stock market proved ineffective. In rides Ron Paul on a white horse to introduce the SEC Transparency Act of 2010 (HR 5970), a bill designed to force greater transparency in the Securities & Exchange Commission. Slowly the interventions imposed by Dodd & Frank, servants to Wall Street, could be overturned. The debt rating agency accountability provision has caused pain, enough perhaps to eliminate them. The FinReg Bill might someday be exposed for its deceit. See the Zero Hedge article (CLICK HERE).

Once more Matt Taibbi arrives with a fine exposure of the financial syndicate inner workings, another in a series of brave works. He argues that finance reform will not stop the high risk gambling that wrecked the economy. He wrote, "Three hellish years of panic, all done and gone. The mass bankruptcies, midnight bailouts, shotgun mergers of dying megabanks, high stakes SEC investigations, all capped by a legislative orgy in which industry lobbyists hurled more than $600 million at Congress." Over half a billion$ in lobby funds to ensure that Wall Street wrote almost the entire FinReg bill!! See his article entitled "Wall Street's Big Win" (CLICK HERE). Both political parties are to blame. Change in party control means nothing as per the November elections. Only fools blind to two decades of events think otherwise.

◄$$$ TURMOIL COMES FROM NEW LIABILITY OF THE DEBT RATING AGENCIES, AS ASSET BACKED SECURITIES MUST CONTAIN A DEBT RATING BY LAW. THE AGENCIES WILL NO LONGER PROVIDE A RATING IN THE CURRENT SETUP OF LIABILITY RISK. $$$

Some openly surmise that the debt rating agencies were just legislated into extinction. As the Wall Street Journal wrote, "The nation's three dominant credit ratings providers have made an urgent new request of their clients: Please don't use our credit ratings... The new law will make ratings firms liable for the quality of their ratings decisions, effective immediately... Advice by the services will be considered 'expert' if used in formal documents filed with the Securities & Exchange Commission. That definition would make them legally liable for their work, meaning that it will be easier to sue a firm if a bond does not perform up to the stated rating." The agencies, deep in collusion with the Wall Street firms which sold debt securities, are openly concerned about their exposed liability. The new Dodd-Frank financial reform (FinReg) law exposes the agencies with liability for their ratings. They yelled from the mountain top not use their names on bond issues. The response has been a complete standstill in new issuance, especially mortgage bonds and junk bonds. The trouble is that asset backed bonds are required by law to include ratings in official documents. Note how Ford Motors yanked its bond offering recently. See the Zero Hedge articles (CLICK HERE and HERE) and the Fall Street article (CLICK HERE). The issue is hardly resolved or settled. Less than 24 hours after Financial Regulation Reform bill went into effect, the SEC promptly suspended the rule that makes the rating agencies more accountable for their ratings. The rating agencies have been caught flatfooted and liable, but for now have a criminal blanket covering them temporarily.

The Chinese have responded with their own new Dagong Intl Credit Rating Company. Its first act and deed was to downgrade the USTreasurys and a gaggle of European sovereign bonds, thus stripping their AAA grade. They explained that growing deficits and fading prospect to repay debt from sluggish economies must be part of the rating process. Interesting concept but an obvious shortcoming of Wall Street!! A recent Xinhua editorial wrote, "To reform the West-dominated international financial order, more credit ratings agencies should be set up in non-Western countries to break Western monopoly over the global credit ratings."

◄$$$ PUBLIC SERVICE PENSIONS ARE GROTESQUELY UNDER-FUNDED. RETIRING EMPLOYEES WILL NOT RECEIVE WHAT THEY EXPECT. EUROPE IS IN NO BETTER SHAPE WITH PENSION OBLIGATIONS. THE MONEY AINT THERE FOR EITHER CONTINENT. $$$

Reality beckons on pensions at all levels of government. They are grossly under-funded and improperly reported. Unfunded pension liabilities are approximately $2.5 trillion, compared to the reported amount of $493 billion. Add to that figure another $558 billion in under-funded liabilities for health and other benefits to arrive at a total under-funding of an estimated $3.1 trillion. That amount is nearly three times higher than publicly stated reports. When public workers retire, their impoverished state and anger at the national situation will be aggravated by the fact that money just does not exist for their retirement. A USGovt bailout for state pensions is not going to happen, since the shortfall is double the annual federal budet deficit. The states will be thrown big crumbs. See the Market Ticker article (CLICK HERE).

◄$$$ THE USGOVT HAS SPAWNED AN ELECTRIC CAR THAT WILL SURELY NOT BE COMPETITIVE IN ANY WAY. SOME CALL IT THE ELECTRIC LEMON. IT IS PROOF POSITIVE THAT NATIONALIZATIONS BEAR ABSURD FRUIT AT GREAT COST. $$$

President Obama with much fanfare took the Chevrolet Volt for a test drive. Some called the event 'The Dolt & The Volt' due to its travesty. Quantifying the waste of taxpayer money is not easy. Start with the $50 billion bailout of General Motors, then add $240 million in USDept Energy grants doled out to GM last summer, $150 million in federal money to the Korean battery supplier Volt. Then tack on the monster $1.5 billion in tax breaks for purchasers and other consumer incentives. Do not overlook the portions of the $14 billion loan GM received in 2008 for retooling its plants. Expect the Volt price tag to be 50% to 70% higher than competitors, and its range to be less than half of its competitors. The word failure is inadequate. This is a very pretty lemon. Few will purchase it, only dolts.

The GM lemon vision churned out a car that costs $41k before relevant tax breaks. Development continued even after the Obama Admin task force reported in 2009 that "The Volt will likely be too expensive to be commercially successful in the short term." Top competitor Toyota first sold the revolutionary electric car in Japan for about $17k, despite the cost of $32k to build each vehicle. Bearing a loss in the first few years of Prius production, Toyota held steady on its price, later to win strong sales growth and price competitiveness today. General Motors offered attractive loan programs and a dumb marketing plan instead. By the way, the Volt offers a whopping 40 miles of battery power when drivers forego the additional combustion engine. That extra engines puts the price tag $8000 above most competitors. The first generation Volt was essentially rejected by GM itself, which decided to cut its 2011 production volume to a mere 10,000 units rather than the initial plan for 60,000. See the New York Times article (CLICK HERE).

◄$$$ GLOBAL WEATHER IS ALL SCREWED UP, AND NOT BEING REPORTED BY THE MAJOR NEWS NETWORKS. SOMETING VERY BIG IS ASKEW. $$$

Weather patterns have altered in the past two years worldwide. A media blackout seems effectively in place concerning anything really meaningful toward meteorological analysis. Rather than analyze, since not an expert, here is a short list of global weather events that should cause discomfort. The earth began cooling down several years ago, despite all the Global Warning propaganda that is motivated toward taxing carbon dioxide by the Ruling Elite.

  • August 9: Twelve earthquakes in the past 48 hours near the Katla Volcano in Iceland.
  • August 9: Deadly Russian heat wave is the worst in 1000 years.
  • August 6: Sacramento California runs 10 degrees Fahrenheit below average.
  • August 5: Snow in Brazil, below zero temperature in the River Plate, tropical fish frozen. Snow fell two days in a row in Southern Brazil and in 12 of 24 provinces in Argentina including Buenos Aires.
  • August 3: Argentina colder than Antarctica for the day.
  • August 3: The coolest July in San Francisco was recorded since 1971.
  • August 3: More than six million fish and thousands of alligators, turtles, dolphins, and other river wildlife float dead in Bolivian rivers, after extreme cold in South America.
  • August 1: Peru declares a national state of emergency.
  • August 1: Worst flooding in Pakistan history occurred.
  • July 31: July was recorded as having the most rain of any month in Mexico history.
  • July 29: Record cold in San Diego California was recorded.
  • July 10: Record cold was recorded at LAX, the Los Angeles Airport.

◄$$$ LET'S GIVE SOME CREDIT TO THE AMERICAN PEOPLE. EVEN THOUGH THEY COMPREHEND VERY LITTLE ABOUT ECONOMICS OR FINANCIAL STRUCTURES, THEY HARBOR GROWING DISTRUST FOR THE NEWS MEDIA. THE LEVEL OF CONFIDENCE AND TRUST FELL SINCE 2003. ONE MIGHT WONDER IF THE ENTIRE 911 STORY, AND ITS SUPPORTING HOAX BASIS OF THE WAR ON TERRORISM CONTAINED TOO MUCH BULLSHXX TO TOLERATE. MORE LIKELY, THE HOUSING & MORTGAGE COLLAPSE IN 2007 TIPPED THE SCALES HARD. $$$

Americans continue to express extremely lost confidence in newspapers and television news, as shown in a July Gallup poll of 1020 American adults. The results were no more than 25% saying they have a GREAT DEAL or QUITE A LOT of confidence in either source. This low respect has continued in the last few years, since falling more than 10% from 2003 to 2007. That period coincides with the saturation of news, analysis, distortions, phony stories, and propaganda surrounding the 911 events and the consequent War on Terrorism, along with incessant worthless stories about crime scenes, court scenes, and public angst. Both themes contain colossal fabrications in support of a hidden fascist rule that has swept the nation. However, the decline was more attributed to the collapse of the housing & mortgage markets. See the single year drop from 30&31 in year 2006 to 23&22 in year 2007. The distorted minimization of the credit market crisis must have turned off many Americans, who have been slammed financially. The babbling distorted nonsense about Green Shoots, Jobless Recoveries, and Bank Fraud has kept the public soured, at a time when their pensions are in tatters and their jobs are insecure.

The mainstream controlled news, dutiful to the syndicate, has had a deep challenge competing with the more diverse, independent, and growing online news platforms from the internet. The annual report from the Pew Project for Excellence in Journalism on the State of the News Media, released in March, found for a third straight year, only digital and cable news sources growing in popularity, while network news, local news, and newspaper audiences reducing in size. These findings align with a similar 2008 Gallup poll that found cable and Internet news sources growing in popularity, while all others held steady or declined. Such rotten sentiment in chronic decline corresponds to the dismal market capitalization of the major media corporations. Let them rot, sink, and be buried! Notice that positive sentiment for television news has been cut in half since 1993, with newspapers almost as big a decline since 1990. See the Gallup article (CLICK HERE).

My personal gauge estimates 80% of main network news stories about the USEconomy, USGovt, or USMilitary are false and distorted, but 80% of the independent internet news stories contain a core of truth and validity. The mainstream news supports the political agenda of the dominant syndicate in control unfortunately, and thus paints a global picture not consistent with open-minded fair people blessed by awareness.

SYSTEMIC FAILURE & EMPIRE END

◄$$$ THE END OF EMPIRE USUAL COMES FROM A COMBINATION OF MONETARY DEBASEMENT AND MILITARY OVER-REACH, WITH A SOCIAL ETHICS INFECTION AS CLINCHER. THE UNITED STATES HAS BOTH TO THE EXTREME AND THE CLINCHER. FOCUS ON THE FINANCIAL ASPECT. THE METER FOR FAILED NATION MIGHT BE USTREASURY BONDS, OR SIMPLY THE USDOLLAR. $$$

In the last couple years, a great many respected economists, financiers, and socialites have frequently and openly compared the path of the nation to that of the Roman empire in its last days. The Roman emperors, oblivious of effects, debased the currency, raised taxes, and permitted thefts with the end result being the collapse of the empire. It bears noting that religious targeting was common at the end of Rome, just like today. Christians then, Moslems today. David Rosenberg (no longer of Wall Street employ) of Gluskin Sheff in Canada continues to produce great wisdom. He shares his view on the end of empire. He wrote, "The primary purpose of this comment is to suggest what things may look like when the Great Bull Market in Bonds, which began in 1981 with 30-year Treasury Bonds yielding 15.25%, finally comes to its glorious end... So what will be the cause of the next secular uptrend in inflation or hyper-inflationary shock? It pays to look back at history. Prior to the inflation of the 1970s-early 1980s, periods of very high inflation were primarily associated with war. Increased credit demands to fund the war effort combined with the drop in productivity that goes along with blowing everything up is an inflationary stew."

Sounds like self-destruction is the true cost of the War on Terrorism, but at least defense contractors are making a lot of money, and the narcotics business of the US Security Organizations has their costs covered. The United States entire economy, political sphere, and society are at a crossroads better described as a cliff's edge. The best indicator of the end days might be the USTreasury long-term bond yield, the first to be rejected. However, protection of the USTreasurys by brute force of monetization and over-usage of leveraged credit derivatives merely transfers the risk to the USDollar. Watch for risk of a sudden decline. With all paper currencies in trouble, simply count on a gold price explosion upwards, to the heavens. This is the final meter of failed empire, a gold rush.

◄$$$ SEE THE BIG BLACK SWAN. IT IS GOVERNMENT DEBT IN THE ENTIRE WESTERN WORLD. THE PONZI SCHEME IS LED BY USTREASURYS. ITS PONZI NATURE IS BEING RECOGNIZED. $$$

Nassim Taleb is the Black Swan author and insightful analyst. He openly warns that the next Black Swan is the gigantic Ponzi Scheme of government debt. The USTreasurys are not alone in the spiraling amount of sovereign debt securities in supply. He points out the basic plague of asset bubbles, that they require an accelerating supply of money to stay level in the end, and thus collapse from lack of funds. Taleb said, "What are are potential sources of fragility or danger that you are keeping an eye on? The massive one is government deficits... When I wrote The Black Swan, I realized there was a huge bias in the way people estimate deficits and make forecasts. Typically things costs more, which is chronic. Governments that try to shoot for a surplus hardly ever reach it. The problem is getting runaway. It is becoming a pure Ponzi scheme. It is very nonlinear. You need more and more debt just to stay where you are. And what broke Bernie Madoff is going to break governments. They need to find new suckers all the time. And unfortunately the world has run out of suckers." He gave a stern warning that governments can print money, threatening hyper-inflation, which stands as a potential risk. See the Business Insider article (CLICK HERE). In the end, uncontrollable monetary inflation provides the required money. That threatens the USDollar. But since all paper currencies share the cash needs, the end meter is an exploding gold price.

◄$$$ PAUL CRAIG ROBERTS HAS GONE BOLD, AS HE PUT TOGETHER A BRIEF ESSAY ABOUT THE YEAR AMERICA DISSOLVED. HIS PERSPECTIVE IS IN SYNCH WITH MINE, A "MAD MAX" SCENARIO WITH TERRIBLE SHORTAGES, RATIONED SUPPLY, AND MARTIAL LAW. ROBERTS WEAVES THE WARLORDS THEME INTO MY SCENARIO, WITH REALISM. $$$

Roberts pains a picture that strongly resembles Mad Max scenarios, very consistent with my future view of the United States. The Jackass forecast has been consistent for years, calling for economic wreckage, bank ruin, supply shortage, currency destruction, official rationing, chaos, martial law, and national debt default. Roberts explains a sequence, as he wrote, "With the dollar's demise, import prices skyrocketed. As Americans were unable to afford foreign made goods, the transnational corporations that were producing offshore for US markets were bankrupted, further eroding the government's revenue base. The government was forced to print money in order to pay its bills, causing domestic prices to rise rapidly. Faced with hyper-inflation, Washington took recourse in terminating Social Security and Medicare and followed up by confiscating the remnants of private pensions. This provided a one-year respite, but with no more resources to confiscate, money creation and hyper-inflation resumed. Organized food deliveries broke down when the government fought hyper-inflation with fixed prices, and the mandate that all purchases and sales had to be in US paper currency. Unwilling to trade appreciating goods for depreciating paper, goods disappeared from stores. Washington responded as Lenin had done during the War Communism period of Soviet history. The government sent troops to confiscate goods for distribution in kind to the population. This was a temporary stopgap until existing stocks were depleted, as future production was discouraged. Much of the confiscated stocks became the property of the troops who seized the goods. Goods reappeared in markets under the protection of local warlords." See the Counterpunch article (CLICK HERE). If you believe this scenario is ridiculous and absurd, just wait, then watch in horror. Try to think back to what clueless and wayward views you maintained five years ago, and compare to today. The certainty of the above scenario is one reason why the Jackass left the United States in January 2007.

◄$$$ KUNSTLER GAVE RATIONALE FOR A FAILED USECONOMY, BUT IT LACKS THE WAR FACTOR AND ITS DESTRUCTIVE EFFECTS. SO HIS BLEAK VIEW IS OVERLY OPTIMISTIC. $$$

James Howard Kunstler is brash, bold, and on the mark. His style is less suitable for children than the Jackass, yet he speaks great wisdom. He wrote, "The loss of productive activity preceded the fraud and swindling beginning in the 1960s, when other nations recovered from the traumas of the world wars and started to out-compete the USA in the production of goods... The fatal trouble began when we attempted to compensate for this loss of value creation by ramping up the financial sector to a credit orgy, so that every individual and every enterprise and every government could enjoy ever-increasing levels of wealth in a system that no longer really produced wealth. The most confused of any putative authorities are the academic economists, lost in the wilderness of their models and equations and their quaint expectations of the way things ought to go if you can tweak numbers... They will go down in history as the greatest convocation of clowns ever assembled, surpassing all the collected alchemists, priests, and vizeers employed in the 1500 years following the fall of Rome. The term 'Regulatory Capture' provides valuable insight. How could Christopher Cox at the SEC fail to notice the stupendous malfeasance in the mortgage related securities rackets? Why is he not working for fifty cents a day in the laundry of Allenwood Federal Correctional Facility? Why is the grifter of Countrywide mortgage favors, Christopher Dodd, still free to guzzle the fabled bean soup in the Senate lunch room? I could go on in this vein for two hundred pages, but you get the drift." See the Kunstler article (CLICK HERE). He stresses the absence of legitimate wealth, a major them of mine. He nails the US economists as an incompetent gaggle of erudite morons, a major theme of mine.

◄$$$ CONSIDER CONSPIRACY THEORY GUYS, SMART ONE AND DUMB ONE. $$$

This nugget is of a personal variety, after countless encounters with naive but well intentioned people over the last few years. Occasionally, the exchange contains hostility. A while back it was charming, but now annoying since information is so available, and the evidence piles up. They wondered and wonder if the Jackass was and is a conspiracy nut. Let me be very clear and not mince words. If you do not believe that grand conspiracies are at work, that steal large sums of money, that protect large corporate crimes, that swindle vast sums of USGovt money, their organize grandiose fraud schemes in the trillion$, that kill innocent crowds in their path, that use war for private gain, that control the news stories, you are an absolute idiot, a helpless moron, a bonafide fool. Detractors, critics, and disbelievers must be wearing stars & stripes for underwear, follow only the news directed by the USGovt, believe in the official 911 story (actually a bloody government coup), trust Wall Street as an efficient engine of capital formation, and dismiss the narcotics role of the USMiliary and Security organizations. Detractors, critics, and disbelievers must feel it a national duty to sign over life savings to aid in the national debt and to relinquish all pension funds to Wall Street firms. Plainly, you are either confirmed idiots or of childlike intellect. Patriotism should never require turning in your wealth and brain at the corporate cleptocracy government hat check room. Consider some basic questions.

When people inquire about my stand on conspiracies, a sequence of follow-up questions is directed at them. A subset is peppered, as best as memory permits. They offer consistent answers to the confronatation.

Do you really believe the official 911 story ?  (NOT REALLY)

Do you really believe the Lone Gunman and Single Shot against JFKennedy ?  (not really)

Do you really believe we are extending freedom to Iraq and Afghan ?  (not really)

Do you really believe the Swine Flu vaccine was to help you fight a virus ?  (not really)

Do you really believe in the USGovt steady stream of an economic recovery ?  (NO)

Do you really believe in the Consumer Price Index and Jobless Rate told to you ?  (no)

Do you believe that Wall Street has stolen hundreds of billion$ ?  (yes)

Do you believe Fannie Mae has deep fraud laced within ?  (yes)

Then the Jackass stops, and proclaims "THEN YOU ARE A CONSPIRACY THEORY GUY, BUT A DUMB ONE." To which they invariably ask Why? Then with a smile, the Jackass replies, "BECAUSE YOU ARE UNAWARE THAT YOU BELIEVE IN CONSPIRACIES."

◄$$$ THE MEXICAN CARTELS ATTEMPT TO EXPAND THEIR SPHERE BEYOND DRUGS. THE VACUUM OF MEXICAN GOVT LEADERSHIP IS VISIBLE AND CLEAR. THE ONLY DOMINANT INSTITUTIONAL ENTITY IN MEXICO IS THE DRUG CARTEL. THE MEXICAN DRUG CARTEL IS EXPANDING BEYOND DRUGS, EVEN ACTING AS A SURROGATE GOVERNMENT APPARATUS. THEY HAVE RESPONDED TO THE MEXICO CITY CENTRAL VOID. $$$

Mexico is failing visibly and sliding futher into chaos. It qualifies for the Failed State category as cartels have gradually taken control of government. The Mexican cartels have moved beyond drugs in business function even as they attempt to supplant the government in key respects. President Calderon has admitted that gangs are imposing fees like taxes in towns they dominate, extorting money from both legitimate and unauthorized businesses, as they impose a monopoly by violent force, and even impose their own laws. They are also preying on churches. Calderon told a conference that he is urged by some people to leave the cartels alone, after more than 28 thousand people have died in drug violence, since he launched an offensive against the cartels when he took office in late 2006. Calderon said, ''Really, they are telling me, 'Mr. President, don't bother the criminals' [but that is] simply an unacceptable option." See the New York Times article (CLICK HERE). The Hat Trick Letter forecast in summer 2007 was clear, that Mexico would become a failed state before year 2011. The decline in oil revenue was my principal factor for the forecast. It is here, right now!!

◄$$$ THE RISK OF A OVERTHROW COUP IN SAUDI ARABIA GROWS BY THE MONTH. THE ANGLES COMPRISE MORE THAN A TRIANGLE, AS INVOLVEMENT INCLUDES SYRIA, SAUDI, LEBANON, RUSSIA, AND A NATION SOUTH OF SYRIA. DETENTE COULD COME IN STEPS, BUT WARMONGERS MUST BE REMOVED FROM THE TABLE. $$$

King Abdullah might have narrowly averted a government overthrow from a royal family coup d'etat. Such a strong rumor is circulating around political and intelligence circles in WashingtonDC and the Middle East. Reports indicate that Prince Bandar bin Sultan bin Abdel Aziz attempted a coup and has since been put under house arrest. He is nephew of the king and former Saudi ambassador to the United States. Other sources claim Bandar was detained in a Saudi prison. Yet other sources claim Bandar is spending time on his ranch in Colorado. Pieces to a puzzle are coming together but more are missing. Timed coincidences are aplenty. In the shadowy world of espionage and intelligence, there is no such thing as a coincidence, as events happen on cue or for a good reason. Consider the sudden ease of tensions between Saudi Arabia and Syria. These are two nations as far apart as one can possibly imagine from every conceivable political, social, and economic aspect. Relations went from war of words to sudden calm. Then came the official visit to Lebanon by King Abdullah of Saudi Arabia, and previously a meeting in Morocco where he conferred with the deputy director of the US Central Intelligence Agency.

The Syrian and the Lebanese press were filled with positive reports concerning a Soft Return of Lebanon, as one leader in Beirut called it. Lebanon has been a hotbed for 30 years, the site of a warring triangle, and tremendous destruction. A direct outcome of the Syrian-Saudi deal was the visit to Damascus by Saad Hariri, new Lebanese prime minister and son of the assassinated leader. Acting in the spirit of this rapprochement, Syria shared with Saudi Arabia information that a member of the royal family was planning a coup d'etat. The information originated from Russian intelligence, according to Middle East sources. In his new role as head of the National Security Council, Saudi Prince Bandar had made numerous visits to Moscow to negotiate arms deals for Riyadh. The exchange of constructive action extended to the troubled Saudi border. Syria told the Saudis that they would intervene in Yemen with the Houthi rebels fighting along the southern Saudi border. In return Syria asked the Saudis to influence the Lebanese prime minister to formally recognize Damascus. To complicate matters, Syria had to convince Lebanon leaders that it had no role in the killing of Rafik Hariri. That seems clear to any enlightened body, as the US & Ally are the likely candidates. Coming to a head was an event that included 70 arrests in Lebanon, charged with spying for a tiny ally nation that looks northeast across the Mediterranean Sea to Italy. Blame for the Hariri assassination has been directed away from Syria, to a locus due south. The ultimate benefit in the region could be some distance established between Tehran (Iran) from Damascus (Syria), which lays the groundwork for Syria to move closer to the West. See the Business Insider article (CLICK HERE).

A reliable consultant source with ties to the Persian Gulf was asked if any substance to the Saudi story. The source succinctly repl ied, "Where there is smoke, there is fire." The Saudi monarchy is at great risk for its close ties to the United States, for its perimission of USMilitary & US Ally to use Saudi Prince Sultan Airbase and to fly over its airspace, and for its collusion with the West to keep the oil price low. In my opinion, the Saudi royals spend far too much time touring London, in Monaco, in desert enclaves, on yachts, on ranches, managing private sequestered billion$ investment accounts, building Spanish mansions, building mansions in Los Angeles, and not watching their backs. The Moslem fundamentalists are gaining ground in typical blowback. The number of examples of such blowbacks makes for a long list. See Iran after the Shah departed in ignominy.

CHINA TRADE WAR BREWS

◄$$$ A GRAND SCAPEGOAT OF CHINA IS COMING. AS THE SYSTEMIC FAILURE OF THE UNITED STATES BECOMES MORE CLEAR, THE TRADE WAR WITH CHINA WILL ESCALATE INTO A MORE VISIBLE STANCE. CHINA WILL BE BLAMED FOR THE AMERICAN FAILURE ECONOMICALLY AND FINANCIALLY. $$$

The sequence, as forecasted in 2005 in the Hat Trick Letter, has been clear, with a progression from 1) trade partner, 2) trade rival, to 3) trade war enemy. Those blathering about significant trade partner benefits in 2001, 2002, and 2003 were blind to the risks. Those minimizing the risks of a trade rivalry in 2004 and 2005 were ignorant of the progression. Hat Trick Letter analysis covered the progression every step of the way, with alarms running fulltime. A main Jackass theme was the sale of sovereignty from foreign USTreasury Bond ownership. It happened on cue. Review the events that have taken place, and observe the progression.

  • With US blessing, China took initiative of Low Cost solution in industrial expansion, as numerous US & European firms invested around $23 billion, sending jobs to China.
  • The currency peg has brought endless claims of manipulation
  • China owns a mountain of vulnerable US$ reserves totalling almost $1 trillion.
  • Chinese sale of vast Fannie Mae bond forced its USGovt nationalization.
  • Chinese contractors have been blamed for the faulty British Petroleum Blowout Preventors on the Deepwater Horizon rig, after they conducted repairs two years ago.
  • The Dagong credit agency has thrown a wrench in the works, with a formal downgrade of USTreasurys, stating reasons like spiraling debt and limited economic wealth.
  • China has surrounded the United States supply routes and port facilities and trade partners, such as Los Angeles, Brazil, Venezuela, and elsewhere.
  • Chinese Govt ordered the end to export of Rare Earth Metals supplies, critical to certain electronics, electric cars, even missile guidance systems.
  • China has set up a protectorate umbrella over most of the Persian Gulf.
  • China has locked down a significant portion of Canadian mineral and farm output.
  • China has forged dozens of supply contracts with West African nations.
  • China has forged imporant a broad cooperative accord with Brazil that includes a Yuan currency lending facility.
  • The US & China have never settled ongoing charges of weapons design theft, directly from US contractor locations (schematics and internet downloads).
  • The US & China are in a heated battle with Google over proprietary technology, next Blackberry, with accusations slung back and forth about espionage.

◄$$$ CHINA & IRAN PLEDGED COOPERATION. REGARD THEIR ANNOUNCEMENT AS A HANDS-OFF WARNING DIRECTED TO ANGLO INTERESTS. HOWEVER, THE LACK OF MILITARY OPTIONS IS GLARING FOR THE US-UK AXIS AGAINST IRAN. $$$

The backdrop has been several years of close cooperation with large scale energy projects, mostly for natural gas, and continuous crude oil purchase. China has imported crude oil from Iran for many years, picking up the slack in demand after a boycott led by the US & Ally. In recent weeks, China and Iran have pledged in a very public manner to cooperate more widely on projects and to seek mutual benefit. The pledge came out of the meeting between Chinese Vice Premier Li Keqiang and visiting Iranian Oil Minister Masoud Mirkazemi in Beijing. No specifics were mentioned on the actual projects, which tells of a higher order purpose. Mention was made of bilateral ties positively grown, with brisk trade and economic cooperation, even social ties. Iran is one of the major crude oil suppliers to China, a fact worth stressing. The formal statement by China cited that it would like to work to safeguard regional and world peace, stability and prosperity, by continuing to forge ties with Iran. Regard that as a shot across the US-UK bow. See the China Daily article (CLICK HERE). In my view, China used the meeting and statement to make it clear for the United States and its key Ally to keeps Hands-Off on Iran. Talk of plans and intentions to attack Iran are reaching a crescendo level. My view is that the intensity of the noise matches the degree to which the US-UK are a broken pair of nations suffering from systemic failure. The Ally is simply the tail in control of the dog, realizing its precarious position with a crippled mainstem.

Gwynne Dyer is an independent journalist from London. Bold opinion is usually not tolerated unless it centers on attack attack attack. Thus the surprise for content. Dyer wrote, "The Pentagon planners have war-gamed an attack on Iran several times in the past 15 years, and they just cannot make it come out as a US victory. It is not the fear of Iranian nuclear weapons that makes the US Joint Chiefs of Staff so reluctant to get involved in a war with Iran. Those weapons do not exist, and the whole justification for the war would be to make sure that they never do. The problem is that there is nothing the US can do to Iran, short of nuking the place, that would really force Tehran to kneel and beg for mercy. It can bomb Iranian nuclear sites and military installations to its heart's content, but everything it destroys can be rebuilt in a few years. And there is no way that the United States could actually invade Iran... The end would be an embarrassing retreat by the United States, and the definitive establishment of Iran as the dominant power of the Gulf region. That was the outcome of every war-game the Pentagon played... It is all bluff. It always was." See the My Catbird Seat article (CLICK HERE).

The lack of military options against Iran is glaring for the United States, the United Kingdom, and its key Ally that often resembles the control tower. Even the USMilitary emphasizes this strategic fact of life. Hawks continue to urge attacks directed against the nuclear facilities inside Iran. My view is that Tehran will never acquire both the nuclear bomb capability and the missile delivery capability. Not in a few years, not ever! Every spring and summer the public is told of a new plan to attack Iran, as militaries are mobilized, and weapons are shipped to the theater. This story has been retold every summer since 2005. It is tiresome and indicative of Anglo desperation, if not a near void in leadership. Iran has 74 million people, three times that of Iraq, which is hardly subdued by force or generosity. The Iranian population is much more active and militant, taking to the streets easily. The United States needs enemies, wants enemies, and its military machine profits heavily from the chain of enemies produced, hardly ever evolved. Meanwhile, the US Defense budget is huge, sacred, and crippling.

USGOVT EXPOSURE & RETALIATION

◄$$$ A BATTLE BREWS OVER THE RIGHT OF THE USGOVT TO SEND MURDER SQUADS TO KILL PEOPLE ON FOREIGN SOIL. THE A.C.L.U. HAS CHALLENGED THE FEDERAL AUTHORITY TO MURDER ANY TERROR SUSPECT WITHOUT DUE PROCESS. IF NOT HALTED, THE SCOURGE COULD SPREAD TO AMERICAN SOIL.$$$

The USGovt has traveled down the long road of the Moral Boulevard, likely never to find its moral compass again. Civil liberties groups filed lawsuit against the USDept Treasury in the first week of August over the right to murder Americans. At issue is the refusal by the USGovt to permit a challenge of the claimed federal authority to murder targeted US citizens suspected of terrorism overseas. What a fascist state in power!! The Center for Constitutional Rights and the American Civil Liberties Union filed the lawsuit, in particular its Office of Foreign Assets Control (OFAC). Apparently, legal groups like the ACLU would be in criminal violation to provide free legal services to a citizen whom the government has designated a terrorist and seeks to kill. The American Civil Liberties Union is on the case, but it is up against the Fascist States of America and its vicious perverse apparatus put together since the false flag 911 attacks. ACLU Executive Director Anthony Romero wrote, "The government is targeting an American citizen for death without any legal process whatsoever, while at the same time impeding lawyers from challenging that death sentence and the government's sweeping claim of authority to issue it. Such an alarming denial of rights in any one case endangers the rights of all Americans... Attorneys should not have to ask the government for permission in order to challenge the constitutionality of the government's conduct." The lawsuit alleges that subjecting unpaid legal services to a licensing requirement violates constitutional guarantees of free speech, due process, and separation of powers between the executive and judicial branches. Also at issue are the undisclosed standards used to designate US citizens for targeted killing. Such is a privilege of fascist leaders, where law is malleable. See the Washington Post article (CLICK HERE). For further information, search Blackwater, the firm with a contract killer business unit. They are very busy inside Iraq.

◄$$$ CHRISTOPHER STORY WAS MURDERED, THE POSSIBLE BEGINNING OF A JOURNALIST PURGE ORDERED BY THE SYNDICATES. TWO OTHER DEATHS SEEM HAVE TAKEN PLACE, MAYBE OF SUSPICIOUS ORIGIN. WHO KNOWS? BUT SURELY THE CHRISTOPHER STORY EXECUTION IS CLEAR. $$$

Let Benjamin Fulford recount the events. He wrote, "Prominent veteran financial journalist Edward Harle (working under the pen name Christopher Story) wrote before his recent death that George Bush Senior, Barak Obama, and other members of the criminal WashingtonDC establishment had ordered him killed. Story was poisoned during a March 2010 visit to the US with a virus created by the Fort Meade biological warfare facility, according to close associates of Story, who spoke to him the day before his July 14th death. Although there exists an antidote for this virus, Story was unaware he was poisoned with it until recently, by which point his liver damage had progressed too far for treatment, according to the sources. Although Story is now dead, his sources will continue to provide the public with vital information about the secret financial war that is now raging towards its conclusion. The murder of Story will not go un-avenged, according to several sources inside the US and UK military industrial complex. The murder of Story is part of a broader, but doomed campaign to silence journalists. Jane Burgermeister, who did much to expose the pharmaceutical industry's involvement in the creation of the H1N1 virus, contacted this writer today saying she feared for her life. She is the victim of systematic harassment by Austrian security service thugs and their corporate government bosses." See the Fulford Typepad segment (CLICK HERE).

Longtime Senator Ted Stevens of Alaska was in the thick of controversy through his career, especially in later years. He served for 40 years in the US Senate, with great controversy lately after his pet project for funded completion of a bridge to nowhere in his home states. He was in power during the entire Alaskan North Slope development, during the debates over the FNWR natural preserve, during the Exxon Valdez oil spill. He knew the oil industry well. He might have been aware of too much information about the oil industry. He might have been aware of some very heavy duty events in the Gulf of Mexico, perhaps of criminal basis, possibly of global ecosystem criminal basis. Who knows? He died in a small plane crash, a favorite execution method. See Gov Wellstone of Minnesota, and the campaign fund manager of former Illinois Governor Rod Blagojevich. It seems too many people at the crux of information die of small plane crashes. The FAA reported gusty winds, cloud cover, and a rainstorm that led to the crash of the amphibious aircraft. Years back, Stevens was one of two survivors in a 1978 plane crash at the Anchorage International Airport that killed his wife and several others. See the AOL article (CLICK HERE). My personal belief is that the Stevens death was an accident.

Oil expert Matt Simmons did not go down in a fiery plane crash. He is famous from his Peak Oil work. He has two streaks that point to possible foul play. First, he has a long background with Halliburton from back in the pre-Cheney days, when the firm had been a solid reputable outfit. It has been a crime syndicate conglomerate in recent years. Simmons might have put an extra emphasis on the peak oil argument, legitimate as it is, in order to provide political cover for the Iraq War launch. That is one slightly tarnished side. The US needs a reliable oil supply, after all. The US also needs a reliable narcotics supply (see the Afghan War). Also, Simmons had been vocal in proclaiming the the BP Deepwater Horizon massive oil leak was actually a volcano. His evidence was convincing, on how heavy volumes of methane and hydrogen sulfide accompanied by the pressured oil spew. He might have known too much about what really happened at the seabed floor of the Gulf of Mexico. Rumors are thick that two major leaks are at work. The original leak might have been the result of experimental weapons usage, one that broke open a volcano. Recall that Haiti suffered a February earthquake, hardly a high risk zone on a fault line. The charge is that the BP oil rig was allegedly exploded intentionally by syndicate goons in order to cover up the damage to the Gulf tectonic plates at an earlier date. Who knows? In today's dage & age, anything is likely. Also, but perhaps not relevant, the BP oil rig site is the dumping ground for thousands of USMilitary weapons. It is a highly unstable area. Regardless, Simmons supposed died in a drowing accident in Maine. He might have had help. The public will probably never know the truth behind all of these deaths. Some could be actual accidents. My suspicion rises when the victims are in the hot soup beforehand. My personal belief is that the Simmons death was NOT an accident.

◄$$$ WIKILEAKS MIGHT BE A VERY CLEVER AGENCY LEAK MACHINE THAT SPECIALIZES IN DISINFORMATION AND MINOR VALUED DATA. IT MIGHT BE A DEVICE TO DRAW ATTENTION AWAY FROM THE US-UK FASCIST AXIS. WIKILEAKS WILL KEEP PUBLISHING DOCUMENTS IN DEFIANCE, OR IN CHARADE. THE MOST SUSPICIOUS ASPECT OF THE ENTIRE AFFAIR IS THAT A USARMY SOLDIER WITH A LOWLY RANK OF PRIVATE SUPPOSEDLY OBTAINED REAMS OF CLASSIFIED DATA. JUDGE BY THE QUALITY OF THE RELEASED INFORMATION. $$$

William Engdahl has detected something afoul concerning WikiLeaks. People who have their head screwed on properly, and have followed East Asian news for the last decade are almost uniformly aware of the death of Osama Bin Laden years ago. My first notice was given of his demise in June 2005, by a Pakistani former colleague who specialized in database software for media, tobacco, and medical firms, not military. He scoured publications in both Saudi Arabia and his native land, fluent in the Arabic and Urdu languages. The Pakistani nation held several days of mourning after Osama died, an event not covered in the US-UK press. Could that be because the US-UK Axis conducted the 911 attacks? Methinks yes. Only the Anglo press maintains the charade story, not even Europe stoops so low as to continue the fiction, as several political leaders from Europe speak openly about the lack of motive to support the Afghan War within NATO, given that Osama is dead. The USMilitary needs a war enemy, and Osama is as good as they come as a painted target. Engdahl notes within WikeLeaks a pattern of exaggerated information content, distraction from the Afghan narcotics game, and revival of a dead theme. The mixture points to a false source of information, a clever one.

Engdahl wrote, "Since the dramatic release of a US military film of a US airborne shooting of unarmed journalists in Iraq, WikiLeaks has gained global notoriety and credibility as a daring website that releases sensitive material to the public from whistleblowers within various governments. Their latest coup involved alleged leak of thousands of pages of supposedly sensitive documents regarding US informers within the Taliban in Afghanistan and their ties to senior people linked to Pakistan's ISI military intelligence. The evidence suggests however that far from an honest leak, it is a calculated disinformation to the gain of the US and perhaps Israeli and Indian intelligence, and a coverup of the US and Western role in drug trafficking out of Afghanistan. Since the posting of the Afghan documents some days ago, the Obama White House has given the leaks credibility by claiming further leaks pose a threat to US national security. Yet details of the papers reveals little that is sensitive. The one figure most prominently mentioned, General (Retired) Hamid Gul, former head of the Pakistani military intelligence agency (ISI) is the man who during the 1980's coordinated the CIA-financed Mujahideen guerrilla war in Afghanistan against the Soviet regime there. In the latest WikiLeaks documents, Gul is accused of regularly meeting Al Qaeda and Taliban leading people and orchestrating suicide attacks on NATO forces in Afghanistan. The leaked documents also claim that Osama bin Laden, who was reported dead three years ago by the late Pakistan candidate Benazir Bhutto on BBC, was still alive, conveniently keeping the myth alive for the Obama Admin War on Terror, at a point when most Americans had forgotten the original reason the Bush Admin allegedly invaded Afghanistan to pursue the Saudi Bin Laden for the 9/11 attacks." See the 321Gold article (CLICK HERE).

Experienced Gordon Duff is more bold in his accusations. He wrote, "The lame Leak site is nothing more than thin cover for The Tel Aviv Tango. Now WikiLeaks is busy selling phony bin Laden stories, having the long dead Osama humiliating the CIA by running around villages in Afghanistan selling vacuum cleaners." See the Veterans Today article (CLICK HERE). The tango label is confusing to the Jackass, after queries revealed Tel Aviv to be a posh tony suburb of Tashkent in Uzbekistan. No indication of any vacuum cleaner franchises were found amidst some disorientation. This requires further research.

The online whistle-blower WikiLeaks said defiantly that it will continue to publish more secret files from hidden protected locations in Sweden, despite USGovt demands not to release classified military documents. Let's see if the supposedly vigilant brave outfit publishes anything remotely as damaging as the Iraqi murders of news reporters. Using pseudonym Daniel Schmitt, spokesman for WikiLeaks, issued a press report. He rejected allegations that their published documents was a threat to US national security. It read, "I can assure you that we will keep publishing documents. That is what we do. Knowledge about ongoing issues like the war in Afghanistan is the only way to help create something like safety. Hopefully with this understanding, public scrutiny will then influence governments to develop better politics... For this reason, we conveyed a request to the White House prior to the publication, asking that the International Security Assistance Force provide us with reviewers. That request remains open. However, the Pentagon has stated that it is not interested in 'harm minimization' and has not contacted us, directly, or indirectly to discuss this offer. WikiLeaks is a globally acting organization. In that respect we are responsible toward the people of the world and not the people or the specific interests of one particular nation." Schmitt admitted that he, editor Julian Assange, and three others work full-time for WikiLeaks. In addition, between 800 and 1000 people volunteer with supporting functions that publish out of three to four dozen countries. He mentioned that their website had experienced numerous attacks.

The Pentagon demanded that WikiLeaks cancel any plan to publish more classified military documents and remove tens of thousands of secret Afghan war logs already posted on the Internet. The demand by the Pentagon is aimed at preventing release of approximately 15 thousand secret documents that the website WikiLeaks has in possession, drawn even from classified US State Department cable communications. The WikiLeaks leader has made threats of regularly distributing backups of documents across Europe yet unpublished. Schmitt said that the group is committed to the global security concerns even if opposed to the US national interests. WikiLeaks posted on July 25th more than 76,900 classified military and other documents, mostly raw intelligence reports from Afghanistan. The 15,000 additional documents are apparently related to that material. These documents so far illustrate the frustration of US forces in fighting the protracted Afghan conflict, as well as debate over its progress. The White House angrily denounced the leaks, claiming they put the lives of Afghan informants and US troops at risk. See the Huffington Post article (CLICK HERE).

Let's see if the quality of leaked content lives up to the perceived and stated threat claimed. Let's also see if the USArmy private Bradley Manning, who is jailed on suspicion of leaking classified material to WikiLeaks, is a target for a different reason. Lastly, since when does an Army private have access to classified information, documents, and lists of informants? Usually it is Never!

On the other hand, a sage veteran source of information, who has numerous contacts serving as in various militaries, even in British Govt security agencies, pitched in. He said, "The game is out of control. One stone thrown will trigger an avalanche. WikiLeaks is compiling files to be published that will demask the entire corruption in Washington and London and how they rigged the game for many years deceiving, lying, and killing. People are fed up and are not scared any longer. When the common people have nothing to lose, those in power will show real fear of losing it all." Perhaps the Pentagon is feeding information without value in order to distract Wikileaks, when the group is a real threat to divulge damaging information. Who knows?

The pendulum swings back again. The Washington Post has published several articles about WikiLeaks and the great threat to US national security. As veteran CraigM said, "The Washington Post of today is a very different of paper from the Watergate glory days. I doubt Rupert Murdoch would allow any exposure to the CIA. Also, does one really think the leftist element of the WashPost editorial board is going to create major problems for Obama and his CIA Chief Panetta?" Good point! Everything about Murdoch and his News Corp that owns FoxNews has been in steadfast vigorous shameful support of the entire phony War on Terrorism, as well as the great nobility of the Iraq War and Afghan War, to secure American freedom and way of life.

◄$$$ ROBERT RUBIN HAD A ROLE IN THE GREAT ENRON CONGAME, THAT RESULTED IN GREAT INVESTOR LOSS, HUGE WALL STREET GAIN, EVEN HARVARD UNIV GAIN, BUT ZERO PROSECUTION OR RESTITUTION VIA LAWSUIT FOR THE GRAND FRAUD. $$$

The Enron con business model was hatched at Harvard University as an idea, a concept, a theory. Its project application was endorsed by Citigroup and JPMorgan. While at Citigroup, Rubin ran with the congame plan full speed. Citigroup was the finance arm. JPMorgan was brought into the fold by Rubin for its expertise in offshore leveraged firms, essential for completing the ruse on the corporate side and to build a firewall of legal liability. The Harvard Endowment Fund made big money all the way up in the Enron congame that lifted its stock price. When the jig was up and the Enron congame was discovered, Harvard made big money all the way down with deep insider trading, using shorts of Enron stock. Muhamed El-Erian was also at Harvard during the downslope period, an impossibility for him not to be part of the congame or have deep knowledge. Citigroup made a fortune with its venture capital investment in the congame. JPMorgan made a fortune with its investment banking financial engineering consultancy, as part of the congame. Enron investors and employees lost a fortune in the congame. The Enron records, with lawsuits pending, were stored in Building #7 of the World Trade Center. The building was destroyed on 911, without benefit of any impact from a crashing aircraft. It fell from pure demolition. The story even includes reliable reports of a gunbattle in the lobby one hour before demolition that left over a dozen dead bodies on the floor. The lawsuits begun by Enron investors were dismissed by the courts in March 2002, as they ruled lack of evidence. One should ask the question why Rubin was asked to serve as the Obama economic advisor during the campaign, after his central role in the Wall Street collapse following de-regulation and worse, the mortgage bond fraud chapter. My viewpoint is that Rubin is part of the Ruling Elite that took advantage of the revolving door that features blue coats after red coats, both factions coming from the same syndicate in control. Both the Enron story and the theft of $3 billion by Citigroup of the Native American Fund need to be told, each containing Rubin's fingerprints.

BRITISH PETROLEUM DAMAGE CONTROL

◄$$$ A GRAND COREXIT COVERUP BY THE USGOVT IS IN PROGRESS TO CONCEAL THE TREMENDOUS RISK. FEDERAL AGENCIES ARE INVOLVED. COREXIT IS TACTICAL CHEMICAL USED TO AVOID MASSIVE FINES. $$$

A whistleblower accuses the USGovt of covering up the lethal nature of the oil dispersant Corexit in order to protect British Petroleum, the corporation. Democracy Now has published a shocking interview with a top EPA official, Hugh Kaufman. In the interview, he charges the National Oceanographic & Atmospheric Admin and the Environmental Protection Agency in a grand coverup. They have systematically concealed and withheld evidence concerning the lethal effects of the neurotoxin pesticide dispersants and Gulf Oil Spill water samples. In doing so, they have saved BP billion$ in fines. Hugh Kaufman is a senior analyst at the EPA's Office of Solid Waste & Emergency Response. He has revealed some appalling details, at great risk to himself and his career. Kickbacks from BP to the federal agencies can be easily assumed. Kaufman said the following.

"Well, Corexit is one of a number of toxic dispersants that are used to atomize the oil and force it down the water column so that it is invisible to the eye. In this case, these dispersants were used in massive quantities, almost two million gallons so far, to hide the magnitude of the spill and save BP money. And the government agencies (both EPA, NOAA) have been sock puppets for BP in this coverup. Now, by hiding the amount of spill, BP is saving hundreds of millions, if not billions, of dollars in fines. So, from day one, there was tremendous economic incentive to use these dispersants to hide the magnitude of the gusher that has been going on for almost three months. Congressman Markey and Nadler, as well as Senator Mikulski, have been heroes in this respect. Congressman Markey made the BP and government put a camera down there to show the public the gusher. And when they did that, experts saw that the amount of material, oil being released, is orders of magnitudes greater than what BP and NOAA and EPA were saying. And the coverup started to evaporate...

People who work near Corexit are hemorrhaging internally, [but the] EPA now is taking the position that they really do not know how dangerous it is, even though if you read the label, it tells you how dangerous it is. For example, in the Exxon Valdez case, people who worked with dispersants, most of them are dead now. The average death age is around fifty. It is very dangerous, and it is an economic. Corexit is an economic protector of BP, not an environmental protector of the public. We know there is a coverup. Dispersants are being used. In Congress, at least three Congress folks (Congressman Markey, Congressman Nadler ,and Senator Mikulski) are on the case...

I did the ombudsman investigation on Ground Zero, where EPA made false statements about the safety of the air. It has since, of course, been proven to be false. Consequently, you have the heroes, the workers here, a large percentage of them are sick right now, not even ten years later. Most of them will die early because of respiratory problems, cancer, etc, because of EPA's false statements." The Environmental Protection Agency has been totally discredited. Its entire managerial staff should be forced into resignment. Its top officials should be prosectured for violations of the Clean Air & Water Act, and later, negligent homicide.

◄$$$ MOST OF THE BRITISH PETROLEUM OIL HAS NOT CLEARED OR DISSIPATED OR EVAPORATED. IT HAS SUNK INTO THE GULF AND HAS SPREAD INTO THE OCEAN. THE COREXIT DISPERSANT FORCED THE OIL TO SINK BELOW THE SURFACE, AS DESIGNED, AS FIRST STATED. THE WATERS ARE LACED, IF NOT SATURATED, WITH OIL AND THE TOXIC CHEMICAL DISPERSANT. THEREFORE, BOTH THE OCEAN IS VULNERABLE TO WIDESPREAD KILLS AND THE RAINWATER SYSTEM IS VULNERABLE TO WIDESPREAD TOXIC DELIVERY INLAND. THE TOXIC PROBLEM IS WORSENED BY LACK OF OXYGEN FROM THE METHANE DISSEMINATION. $$$

Reports reveal that BP has systematically from the start been sinking the majority of the leaked oil with Corexit. Consider a boat ride with T-Boy, his internet handle name. He said, "We took a boat out on August 2nd 2010 to look for signs of oil and the use of Corexit. We also gathered samples for testing. At first glance, one could easily accept the party line that most of the oil is gone. We took a closer look and spoke to people on the ground. What we found is disconcerting." See the YouTube video (CLICK HERE). My view is simple and firm. Corexit was first reported to be doing its job, namely keeping the oil from spreading on the water surface, thus sparing the beaches of ugly crude oil saturation. By spreading the crude oil, which is itself toxic, with chemical dispersant that is much more toxic, British Petroleum has effectively killed most marine life forms, above and below the water surface. The clever attack involves removal of the visible evidence of the crude oil globs. The Gulf has absorbed the toxic chemicals into the waters, and thus put the kill on the ecosystem without easy visible signs. Chemists are on the case, proving the toxic levels. Few seem to pay attention to an equal threat. The rainwater system is vulnerable to toxic delivery inland that will render great damage. Its effects will be much slower to notice, detect, and measure. Stay posted this autumn.

◄$$$ THE B.P. CLEANUP CREWS ARE DISPOSING OF HIGH VOLUMES OF DEAD ANIMALS, REPTILES, AND BIRDS. MANY INVOLVE FINES OF $50K PER DEAD CREATURE, BUT AVOIDED DUE TO SECRECY AND WORK UNDER ARMED GUARD. PHOTOGRAPHING THE ILLEGAL ACT IS PUNISHABLE BY ARREST AND FINES. THE ENTIRE SPILL ZONE IS DEAD WITH LITTLE IF ANY SIGN OF MARINE LIFE OR INSECT LIFE. $$$

The disaster caused by the massive BP oil leak at the Deepwater Horizon site continues to expand despite the pathetic attempt by Commander Thad Allen and BP to defend the situation as improving. Newspapers are celebrating the rapid dissolution of the oil, not too visible anymore. Skimmer vessels go through silly exercises. Yet the dispersant Corexit breaks down oil on the surface. As the oil is broken down, it mixes with the dispersant and flows underneath the water surface. The press & media networks paint a picture of return to normalcy. Scientists who have traversed the Gulf coast from Louisiana to Florida over the last few weeks report the reality as distinctly different. Jerry Cope and Charles Hambleton call the coverup and cleanup the Crime of the Century. They wrote the following.

"The coastal communities of Louisiana, Mississippi, Alabama, and Florida have been inundated by the oil and toxic dispersant Corexit 9500, and the entire region is contaminated. The once pristine white beaches that have been subject to intense cleaning operations now contain the oil/dispersant contamination to an unknown depth. The economic impacts potentially exceed even the devastation of a major hurricane like Katrina. The adverse impacts on health and welfare of human populations are increasing every minute of every day and the long-term effects are potentially life threatening.

Over the Gulf from the Source (official term for the Deepwater Horizon spill site) into shore there is virtually no sign of life anywhere in the vast areas covered by the dispersed oil and Corexit. This in a region previously abundant with life above and below the ocean's surface in all its diversity. For months now, scientists and environmental organizations have been asking where all the animals are. The reported numbers of marine animals lost from BP fall far short of the observed loss. The water has a heavy appearance and the slightly iridescent greenish yellow color that extends as far as the eye can see.

 

[Left: Corexit in the murky darkened water,  Right: illegal dumping of dead creatures]

The oceans are empty; the skies tinged yellow by evaporating oil and toxic dispersant devoid of birds; dogs mysteriously have no fleas; in an area usually besieged by mosquitoes, there is little need for repellent; and the usual trucks spraying are nowhere to be seen. Shell Beach, in Hopedale Louisiana, was one of the sites where carcasses of sperm whales were suspected of being destroyed. The operational end of the island was closed to unauthorized personnel and the airspace closed. The US Coast Guard closed off all access from the Gulf. This picture [not displayed in the report] shows the area as it was prepped to receive what were suspected to be whale carcasses for disposal." See the Huffington Post (CLICK HERE). The Rolling Stone calls the Gulf poisoning the biggest environmental disaster in American history, which BP is making worse. See their article (CLICK HERE). So the EPA and Coast Guard provide critical coverup assistance. Their veil cannot hide the hundreds of thousands of dead fish that washed ashore onto the New Jersey beaches, or the massive steady death toll washing onto the short strip of Mississippi coastline. The New Jersey flotsam turned jetsam serves as glaring evidence of the marine life massacre on BP's dirty hands. See the Zero Hedge article, complete with videos (CLICK HERE).

◄$$$ PRESIDENT OBAMA HAS DECLARED THE B.P. OIL VOLCANO LEAK AS LARGELY OVERCOME, A VACANT UNINSPIRING DECLARATION OF VICTORY AFTER OBSCENE NEGLIGENCE AND BROAD ECOSYSTEM DESTRUCTION. THE DEBATE CONTINUES, AS FEW BELIEVE HIM. $$$

The latest report on the Gulf of Mexico disaster by the Obama Admin set off a war of words among scientists, Gulf Coast residents, and political writers about lasting effects from the Deepwater Horizon oil spill and its repercussions. The offical report actually claimed that most of the estimated 4.9 million barrels of oil that have leaked into the Gulf could be accounted for, as in dissipated, evaporated, or diluted. It painted a picture of reduced risk and minimal implications. Gulf residents pointed to oily beaches, ruined marshes, and dead birds as evidence that the damage already done was severe, with more to come. Obama said, "We have to reverse the damage that has been done. We will continue to work to hold polluters accountable for the destruction they have caused. We have got to make sure that folks who were harmed are reimbursed. And we are going to stand by the people of the region however long it takes until they are back on their feet." Of course, all USGovt agencies under Obama's direction are vigorously pursuing the exact opposite of what he said, much like campaign for change. What are heard seem empty words.

Scientists specializing in the issues raised by the new report are split. Some researchers attacked the findings and methods, calling the report premature at best and sloppy at worst. Much research is still in progress. Too many generous assumptions were used in modeling. Samantha Joye is a marine scientist at the University of Georgia who has led some of the most important research on the Deepwater Horizon spill. She said, "If an academic scientist put something like this out there, it would get torpedoed into a billion pieces." Thus the report qualifies as a marketing brochure, or a defensive publicity briefing, not a research output. Other scientists found the report reasonable, if not conservative. Edward Overton of Louisiana State University has been appeared often on television. He is an experienced Gulf researcher who believes the report might have under-estimated the amount of oil that had effectively vacated. He expressed concern that dispersed oil in the deep ocean might not break down quickly.


◄$$$ BENZENE EMISSIONS FROM A BRITISH PETROLEUM REFINERY FACILITIES IN TEXAS MIGHT EXPOSE THE ROGUE FIRM TO BILLION$ IN DAMAGES FROM JURY AWARDS. THE DATES IN COURT ARE COMING. NOBODY HAS YET EVEN DISCUSSED PROPERTY VALUE LOSS AND RELATED LAWSUITS. THE BENZENE RELEASES ARE UNRELATED TO THE DEEPWATER HORIZON INCIDENT. $$$

An event separate and unrelated to the Deepwater Horizon oil rig explosion and massive oil leak concerns the toxic gas benzene. The event went almost without news reporting. A massive benzene leak lasting 40-days in Texas has triggered a new lawsuit demanding $10 billion in damages. Attorney Tony Buzbee believes the benzene lawsuit could eclipse oil spill claims. In another lawsuit, many more people were injured in December from exposure to carbon disulfide. A jury gave ten of Buzbee's clients $100 million in damage awards. Benzene is much much toxic and the attorney anticipates much larger awards.

The benzene suit involves 538,000 pounds of toxic chemicals that leaked from BP's refinery in Texas City. An angry jury could stick British Petroleum with a heavy cost for a decade of health problems related directly to emissions. Buzbee said, "We represent more than 6000 individuals who were exposed to benzene. BP [refineries] average between 200 to 400 releases yearly, but this one takes the cake [lasting 40 days]. Enough is enough. If the regulatory authorities cannot make BP conform to the emission laws, maybe a jury can." Benzene is definitely toxic, and can be blamed for health problems of thousands of people. Needless to say Buzbee is leading lawsuits against BP on benzene and the several claims from the BP explosion, leak, and contamination. See the Business Insider article (CLICK HERE).

Property damage extending immediately from the BP oil volcano massive leak has so far gone unaddressed. The economic damage is very difficult to prove. Lost property value is easier to prove. John Gittelsohn of Bloomberg wrote, "Gulf of Mexico coastal homes may lose as much as $56,000 each in value, as buyers shun areas marred by the worst oil spill in US history, according to CoreLogic Inc. Waterfront properties in Gulfport Mississippi face the biggest average declines, followed by those in Mobile Alabama and Pensacola Florida, the real estate data company said." Angry homeowners will certainly be consulting with attorneys. A parade of lawsuits from wrongful death, destroyed income sources, wrecked businesses in tourist zones, and citizen actions on environmental crimes are sure to come.

A source with Russian and East Asian connections pitched in with a surprising comment from a different part of the world. He wrote, "In the end BP will be brought to account for another disaster incident. They have a skeleton waving out of their basement in Azerbaijan that dwarfs the Gulf disaster. The culprit in Baku is also BP." The court system is not developed in that corner of the world, but hitmen do operate freely. See the Baku city and shoreline in the photo.

◄$$$ GULF CURRENTS HAVE BEEN DISRUPTED. IF THEY FAIL TO REVIVE, CONSEQUENCES COULD SPREAD TO ALTERED WEATHER PATTERNS ACROSS THE GLOBE, AND CERTAIN GLOBAL CROP FAILURES. $$$

The Gulf Loop Current is at risk, and must restart under strain. The currents are extremely important, like an engine that pushes the ocean currents. Oceanographic satellite data shows that the Loop Current in the Gulf of Mexico has stalled as a consequence of the BP oil spill disaster, according to Dr Gianluigi Zangari, an Italian theoretical physicist. He studies major complex and chaotic systems at the Frascati National Laboratories in Italy. The effects of this stall have begun to spread to the Gulf Stream in the Southern Atlantic Ocean. The Loop Current is a crucial element of the Gulf Stream, commonly called the main engine of the powerful stream. The challenge is for natural processes to re-establish the stalled Loop Current. If not, we could begin to see global crop failures as early as 2011, claims Zangari. Notice the strong upward pathway between Cuba and South Florida, then up the eastern coast of Florida. Some strength appears to be derived from the narrow passageway between Cuba and the Yucatan Peninsula of Mexico as a funnel.

The Gulf Stream is a strong interlinked component of the Earth's global network of ocean conveyor currents, which drive the planet's weather systems and thus play a key role in the rainwater systems. The Gulf of Mexico waters have turned more dense with heavy crude oil and dispersant chemicals, therefore harder to push along. The major concern by Zangari is that the Loop Current might fail to restart, causing dire global consequences as a result of extreme weather changes. Natural forces will probably regenerate the current, as dispersion occurs more fully, a possible positive effect of the Corexit usage. The repercussions of weather impact could trigger widespread droughts, floods, land erosion, crop failures, and subsequent global food shortages. Press analysts tend to trivialize the profound effects of the incident with respect to the currents. Scientists are trying to warn of some potential extreme impacts. Zangari said, "The real worry is that that there is no historical precedent for the sudden replacement of a natural system, with a dysfunctional man-made system. That is, except for the atomic bomb blasts and contamination as a result of nuclear waste and nuclear plant accidents, such as the Chernobyl disaster in April 1986." The BP Deepwater Horizon incident has been dubbed "Oil's Chernobyl" in the US backyard. See the Pure Energy Systems Network article (CLICK HERE).

A quick side comment. The nation of Costa Rica, adopted home of the Jackass, is doubly protected from the flow of toxic water via ocean currents. Look closely at the graph. First, the waters from the center of the Gulf are directed northward, with no southern passage through the Yucatan-Cuba straits. Second, the open ocean waters in the South Atlantic off the South American coast of Venezuela and Colombia bypass Costa Rica almost entirely. The Atlantic coastline of Costa Rica is supplied by an eggbeater of 200 miles in diameter, virtually untouched by open ocean. Rainwater systems are another story, but usually currents dictate cloud movement. The CR weather comes from the East, never from the West or North, a fact that caught me off guard in early 2007 upon arrival. The source of most CR rainfall is the ocean north of Venezuela and Colombia, clean clean clean.

◄$$$ THE BRITISH PETROLEUM CLEANUP FUND IS APPARENTLY A RUSE, A LIE, A SCAM. IT DOES NOT EXIST. MARKETING WITH PRESIDENTIAL HELP IS EFFECTIVE. $$$

In a highly publicized meeting with BP executives at the White House in June, the Obama Admin announced a $20 billion dollar fund to fix the damage done by BP's massive oil spill. At the time, the generous corporate initiative seemed responsible and praiseworthy. Only one problem. There is no such BP cleanup fund; it does not exist!! See the Brasscheck video (CLICK HERE). Now that is deceptive marketing.

◄$$$ A VETERAN OIL RIG RIG COOK SAW MUCH CORRUPTION IN THE MINERAL & MINING SERVICES AGENCY ON A REGULAR BASIS. BRIBES TOOK PLACE. SAFETY VIOLATIONS WERE ROUTINE AS PAYOFFS. HE BLAMES A QUOTA BONUS PLAN FOR EXCESSIVE RISKS. $$$

Dan Peterson worked as a cook on oil rigs off the coast of Louisiana for 15 years, retired three years ago. Like the executive chauffeur, he saw things and heard things. He lived on Grand Isle, the barrier island community wrecked by the BP spill. Events in the meal galley featured crew members with him operating invisibly at witness. Peterson said, "I saw and heard a lot. As a cook, I was regarded as a retarded derelict and accorded a degree of anonymity, which left me privy to many acts of bribery and extortion not open to public scrutiny. I was on more than one job where I was enlisted to go ashore and pick up a few bottles of Johnnie Walker Black and a fat envelope for someone with MMS. [MMS was routinely] fed graft to ignore safety violations. I was on a rig where a bunch of stacked pipe came crashing through the deck and into the crew's quarters. It missed crushing me by six inches. Without going into all the technical details of a shoddy and rushed welding job on a spud barge, this was caused by a problem that MMS had objected to at first. But that objection disappeared when they were paid off... In my opinion, [instead of a moratorium] they should take these rigs and have them inspected, one at a time, by anybody except MMS. If they do not pass muster, then shut them down, absolutely. But don't shut them all down at once, beforehand, to await inspection for who knows how long. That puts so many people out of work." The total shutdown by Obama decree invites credible accusations of fraudulent influence for the benefit of onshore energy projects.

The Mineral Management Service is the federal watchdog agency that grants drilling permits and supervises oil industry safety. Its employees rarely act on their responsibilities while engaged in questionable interactions with oil company employees, which include alleged drug usage and sexual liaisons. Its internal conflict of interest is well known and pervasive. In fact, after criticism of MMS performance following the Deepwater Horizon explosion, Interior Secretary Ken Salazar ordered the agency split in two so as to avoid conflicts of interest in regulating the same companies it conducts business with. Peterson approves of how President Obama forced the resignation of MMS chief Elizabeth Birnbaum in May. At the same time, Peterson and the great majority associated with the oil industry oppose the drilling moratorium.

Peterson's offered wisdom in assessment of the current crisis. He argues that the critical issue is caution versus quotas at the corporate level. "I do not know the mechanics of what happened on the Deepwater Horizon, but it is crystal clear in my mind why the potential and then later realized problem occurred. It boils down to BP's oxymoronic safety & production bonus plan. If everything went cool while digging a hole, everyone involved would be given a quite large, tax-free check at the end. The code was of paramount importance... Any rat would inevitably be hazed and punished by co-workers... I have worked on many BP rigs. Their safety efforts are no better or worse than any other company's. BP has been leading the Coast Guard around by its nose. They have Thad Allen [Obama's point man] on a leash. He acts subservient to them because he is not an oil man. He is a bureaucrat who will not stand up to them."

See the Politics Daily article (CLICK HERE). Not a single USGovt agency is clean anymore. The MMS agency is a lapdog for the oil industry. The EPA is a lapdog for British Petroleum, ready to cover up whatever is necessary. If an agency is not subservient to the narcotics agencies (like Drug Enforcement Agency or the US Coast Guard), or subservient to the banks (SEC, CFTC), they serve the oil industry. Witness the crowning events of the last chapter written on the Fascist Business Model, the final pages being flipped on the United States of America.

◄$$$ HALLIBURTON STANDS TO BENEFIT TREMENDOUSLY FROM ONSHORE GAS DRILLING PROJECTS. THE FRACKING LAWS CHANGED UNDER THE BUSH ADMIN. A REBIRTH IS IN PROGRESS FOR THE ONSHORE OIL BUSINESS, AIDED BY CERTAIN HIGHER CRUDE OIL PRICES. SHOULD CONGRATULATIONS GO OUT TO CHENEY? $$$

Catherine Austin Fitts is a brave soul with unique information access, owing to her service at the Dept of Housing & Urban Admin and numerous contacts developed in the 1990 decade. She has been harping on the Halliburton angle to the BP Deepwater Horizon oil leak. As preface, she mentioned that Matt Simmons had one foot in the Halliburton pool, dirty as hell. She wrote the following note to her paid subscribers, and shared it. Refer to ex-VP Cheney who served as Halliburton CEO for several years, transforming the corporation into a smooth crime syndicate subsidiary.

"Halliburton developed the technology that is being used for fracking and Cheney got the rules changed in 2005, so that fracking chemicals were excluded from the Safe Water Act. So we have a gold rush in gas drilling onshore. If offshore shuts down, supporting the gas price, and that means more money for the onshore frackers, how much is the shut down in offshore drilling and the BP well worth to Halliburton in increased fracking and onshore profits?" We are talking about motive for any suspected criminal role in the BP rig explosion. Recall the Halliburton group that arrived on the oil rig, not resembling oil worker crews. The did their business and split.

Fitts passed along an account of a phone call from a drilling professional in the Texas natural gas fields. It came from a contact of hers. The point is that the crude oil price is going up up up. He mentioned that the BP Gulf disaster was turning the fundamental assumptions of the oil industry upside down, and that sharply higher oil prices were in the cards, probably $100/barrel by year end. Major oil companies with deep pockets at risk were rushing to dump their existing offshore leases and partnerships in producing wells. The major oil firms have learned that liability caps are nothing more than wishful thinking. Vengeful regulation could cost them dearly, they expect. Hedge funds entered the bidding, but only at substantial bargains. A new distressed junk market has been reborn. Risk is being repriced in a clear manner that values offshore assets at a discount, and onshore assets at a new found premium. Minimum stakes are going for as much as $50 million. The impairment of Gulf assets is breathing new life into the once moribund natural gas market. New enormous production is coming online through the new Fracking technology, where everyone is using a volume strategy to offset plunging prices. Gas supplies will be tight enough to sustain it in a $3.50 to $5.00 trading range for the next 18 months.


Thanks to the following for charts StockCharts,  Financial Times,  UK Independent,  Wall Street Journal,  Zero Hedge,  Business Insider,  Calculated Risk,  Shadow Govt Statistics,  Market Watch.